Cantel Medical Reports Record Financial Results For The Fourth Quarter Ended July 31, 2017
Published: Sep 28, 2017
- Full year net sales of $770.2 million, up 15.9% with organic sales growth of 11.0%
- Diluted EPS of $0.41 up 4.2%
- Non-GAAP diluted EPS of $0.54 up 11.4%
- Full year diluted EPS of $1.71 up 18.9%
- Full year Non-GAAP diluted EPS of $2.08 up 18.7%
LITTLE FALLS, N.J., Sept. 28, 2017 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMD) reported net income of $16,997, or $0.41 per diluted share, on a 14.8% increase in net sales to $205,502 for the fourth quarter ended July 31, 2017. This compares with net income of $16,291, or $0.39 per diluted share, on net sales of $179,002 for the fourth quarter ended July 31, 2016. For the full fiscal year ended July 31, 2017, the Company reported net income of $71,378, or $1.71 per diluted share, on a 15.9% increase in net sales to a record $770,157. This compares with net income of $59,953, or $1.44 per diluted share, on net sales of $664,755 for the full fiscal year ended July 31, 2016.
Non-GAAP net income increased 11.5% for the fourth quarter ended July 31, 2017 to $22,489, or $0.54 per diluted share, compared with non-GAAP net income of $20,162, or $0.48 per diluted share, for the same quarter last year. For the full fiscal year ended July 31, 2017, the Company reported a 18.9% increase in Non-GAAP net income to $86,740, or $2.08 per diluted share. This compares with non-GAAP net income for the full fiscal year ended July 31, 2016 of $72,938, or $1.75 per diluted share.
Jørgen B. Hansen, President and Chief Executive Officer stated, "We are pleased to report record sales and strong earnings performance this quarter. Our 14.8% reported sales growth in the quarter was driven by organic growth of 9.2% and the impact from acquisitions of 6.1%, which was slightly offset by the negative foreign currency impact of 0.5%. We continue to see very strong performance internationally, where sales were up 17.3% overall and our US business had performed exceptionally well given tough comparables with 14.1% growth. Gross margin was relatively flat year over year at 47.6%."
Hansen added, "Our Endoscopy segment had strong organic growth of 9.7%, and overall sales growth of 13.9%, which was an excellent result given the very strong performance in the prior year. Our recurring revenue for this segment was up a healthy 17.6%. In July, we announced the acquisition of BHT Group, the German leader in automated endoscope reprocessing. We closed this transaction in August and are optimistic that the addition of BHT Group will position us well for future growth in Germany and add new products with strong global potential.
Sales in our Water Purification and Filtration segment increased 13.7%, with our strong backlog translating into an increase in shipments for the quarter, driving the majority of the growth over the prior year.
For the fourth consecutive quarter, our Healthcare Disposables segment yielded our strongest sales growth, up 23.0% with the majority of growth driven by the Accutron acquisition. Favorable product mix coupled with double-digit growth of our higher margin branded portfolio drove gross margin expansion in this segment.
The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. We finished the fourth quarter with cash of $36,584 and gross debt of $126,000, while generating adjusted EBITDAS of $42,555 in the quarter, up 13.1%. For the full fiscal year 2017, adjusted EBITDAS grew by 17.0% to $161,466 as compared to $137,949 for the full fiscal year 2016.
Overall, the excellent performance in the fourth quarter capped off a strong fiscal year 2017 for Cantel that was entirely in line with our overall growth objectives."
Conference Call Information
The Company will hold a conference call to discuss the results for the fourth quarter ended July 31, 2017 on Thursday, September 28, 2017 at 11:00 a.m. Eastern time. In addition, during the conference call the Company will provide financial guidance with respect to the full fiscal year ending July 31, 2018.
To participate in the conference call, dial 1-877-407-8033 (US & Canada) or 1-201-689-8033 (International) approximately 5 to 10 minutes before the beginning of the call. If you are unable to participate, a digital replay of the call will be available from Thursday, September 28, 2017 through midnight on November 28, 2017 by dialing 1-877-481-4010 (US & Canada) or 1-919-882-2331 (International) and using conference ID #:20215.
An audio webcast will be available via the Cantel website at www.cantelmedical.com. A replay of the presentation will be archived on the Cantel web site for those unable to listen live. In addition, the Company will provide a supplemental presentation to complement the conference call. The presentation can be accessed on Cantel's website in the Investor Relations section under presentations.
About Cantel Medical
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives. Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates, hollow fiber membrane filtration and separation products. Additionally, we provide technical service for our products.
For further information, visit the Cantel website at www.cantelmedical.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties, including, without limitation, the risks detailed in Cantel's filings and reports with the Securities and Exchange Commission. Such forward-looking statements are only predictions, and actual events or results may differ materially from those projected or anticipated.
To read full press release, please click here.